Update: 2020 Strategic Initiatives

01-Jul-2020

By: Eric Danos

We’re half-way through 2020. This is a great time to glance back at what we have accomplished through our Strategic Initiatives and look ahead at what’s next.

One of the main themes for 2020 has been for us to be focused. We recognized the need to bring key initiatives through to completion without being distracted by adding too many new things. But we never envisioned how this year would create so many unexpected obstacles and distractions. COVID-19 and a commodity price crash pulled us in a lot of different directions. These are two once-in-a-generation events happening at the same time! Despite all this, we have made surprisingly good progress on our strategies.

I attribute our progress firstly to your hard work. Secondly, we have good strategies that look past these near-term events. We are focusing on exactly the right things that will help us respond and position us for the future.

Let’s take Technology, for example. For our industry to remain viable, we must help our customers operate profitably in a $40-something oil price environment. It will take more restructuring in the industry to reach that goal. One way that Danos has responded is by deploying technology to help us work more efficiently, make better decisions and be safer. Although we paused the major software and systems implementation initiative, we are now looking at how to restart them. The benefit to the pause is that we’ve learned a lot this year that will shape the future of how we work. There are other less prominent technology efforts marching ahead. Collectively, these things will make a significant impact.

Shale has been particularly hard hit this year. But we remain committed to this segment of the market because we believe it is still relevant to the worldwide energy supply equation. The customer base there will change in a way that is better for Danos. We have been particularly successful working with large integrated operators who value our culture and our competencies. These are the customers who will win in the shale markets. We will be there to support them.

In the category of Operational Excellence, we were working on the right things before this year’s headwinds. It’s critical today that we are good stewards of our balance sheet assets. This means better management of all our physical assets, in particular, vehicles. It also means we will expend a lot of effort to manage the credit we extend to our customers through the work we do for them. One of our largest financial risks over the coming months is customer bankruptcies. Our team saw this coming and is staying on top of it.

The last few things I want to mention are even more Forward Looking. This is an important point because despite all the effort we have had in reacting this first half of the year, we haven’t lost track of where we are going over the next few years.

  • We are re-starting efforts to develop leaders, empower employees and attract and retain the very best in our industry.
  • Our executive and business development teams have spent time evaluating other markets and are becoming focused on renewables as a key opportunity area for us. As the energy market evolves to include a higher supply of renewables as part of the overall mix, so will we evolve.

It’s been a very rough and unexpected start to the year, but this has created opportunities for companies like Danos who are strong. Let’s take care of business today and focus ahead on the opportunities that are beyond today’s storms.

Eric Danos

Eric Danos oversees the company’s finance, safety, human resources and land activities. A third-generation owner and member of the Danos Board of Directors, Eric began his career at Danos in 2004 as an operations manager for the international labor division. Eric has a B.S. in Marketing from Louisiana State University and an M.B.A. from Stanford Graduate School of Business.


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